Banking Tax
Banks sit in their own corner of the tax code. This is where I keep the explanations, references, and worked examples I wish I'd had earlier.
What this covers
- Effective-rate drivers — tax-exempt municipal interest, bank-owned life insurance, and the credits that pull a bank below 21%.
- The allowance for credit losses — book versus tax, the CECL transition, and why the deferred tax asset here is usually the largest one on the balance sheet.
- Tax-credit investments — low-income housing, renewables, and new markets, plus proportional-amortization accounting.
- The corporate AMT — how the 15% book-minimum tax interacts with a bank's AOCI and credit carryforwards.
- State apportionment — receipts-factor sourcing for interest income and the Finnigan / Joyce split.
- Mergers — purchase accounting, core-deposit intangibles, and section 338 elections.
Writing
More entries are being written.
Get in touch
If you're working on something in this area — or you think I've got something wrong — send me a note.